Educating your children to make smart money decisions can be a challenge. Children are often compelled to spend their money as quickly as possible on things they want. Let’s face it… even some of us are guilty of the same thing. The most important thing parents can do is lead by example on how to manage their money.

Here are some simple strategies parents can use to teach their children smart financial habits.

• Teach the importance of saving. Have your children set a goal for something they really want. Set up a process to help them save by putting their money into a savings account or piggy bank.
• Put a waiting period on gift cards or cash. Encouraging your children to wait a certain length of time before spending gift cards or cash they receive can help ensure they purchase something they truly value.
• Show your children the value of money. In a world filled with credit cards, children today have very little interaction with actual money and might not understand the simple task of making change. Play games that encourage your children to count money or have them calculate their own change after they purchase something at the store.
• Explain the difference between needs and wants. “Is this something you could live without?” should be an important question you ask your children to help establish between needs and wants. Once your child learns the difference, it will help them spend their money more wisely.

Be mindful that teaching your children to be smart with money starts with you and your actions. To learn more healthy financial habits, contact your Catholic Financial Life advisor today! https://www.catholicfinanciallife.org/find-an-advisor